1     
JOINT RULES RESOLUTION ON BASE BUDGETING

2     
PROVISIONS

3     
2018 GENERAL SESSION

4     
STATE OF UTAH

5     
Chief Sponsor: Justin L. Fawson

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Senate Sponsor: ____________

7     

8     LONG TITLE
9     General Description:
10          This resolution establishes zero based budgeting under certain circumstances.
11     Highlighted Provisions:
12          This resolution:
13          ▸     requires every appropriations subcommittee to create a zero based budget for a
14     percentage of the subcommittee's line items or programs each interim; and
15          ▸     modifies provisions governing appropriations subcommittee meetings.
16     Special Clauses:
17          None
18     Legislative Rules Affected:
19     AMENDS:
20          JR3-2-402
21          JR3-2-501
22     

23     Be it resolved by the Legislature of the state of Utah:
24          Section 1. JR3-2-402 is amended to read:
25          JR3-2-402. Executive appropriations -- Duties -- Base budgets.
26          (1) As used in this rule:
27          (a) "Base budget" means:

28          (i) the zero based budget created under JR3-2-501; or
29          (ii) for line items or programs not reviewed in the past year under JR3-2-501, amounts
30     appropriated by the Legislature for each line item [of appropriation] for the current fiscal year
31     that:
32          [(i)] (A) are not designated as one-time in an appropriation, regardless of whether the
33     appropriation is covered by ongoing or one-time revenue sources; and
34          [(ii)] (B) were not vetoed by the governor, unless the Legislature overrode the veto.
35          (b) "Base budget" includes:
36          (i) any changes to those amounts approved by the Executive Appropriations
37     Committee; and
38          (ii) amounts appropriated for debt service.
39          (2) (a) The Executive Appropriations Committee shall meet no later than the third
40     Wednesday in December to:
41          (i) direct staff as to what revenue estimate to use in preparing budget
42     recommendations, to include a forecast for federal fund receipts;
43          (ii) consider treating above-trend revenue growth as one-time revenue for major tax
44     types and for federal funds;
45          (iii) hear a report on the historical, current, and anticipated status of the following:
46          (A) debt;
47          (B) long term liabilities;
48          (C) contingent liabilities;
49          (D) General Fund borrowing;
50          (E) reserves;
51          (F) fund balances;
52          (G) nonlapsing appropriation balances;
53          (H) cash funded infrastructure investment; and
54          (I) changes in federal funds paid to the state;
55          (iv) hear a report on:
56          (A) the next fiscal year base budget appropriation for Medicaid accountable care
57     organizations according to Section 26-18-405.5;
58          (B) an explanation of program funding needs;

59          (C) estimates of overall medical inflation in the state; and
60          (D) mandated program changes and their estimated cost impact on Medicaid
61     accountable care organizations;
62          (v) decide whether to set aside special allocations for the end of the session, including
63     allocations:
64          (A) to address any anticipated reduction in the amount of federal funds paid to the
65     state; and
66          (B) of one-time revenue to pay down debt and other liabilities;
67          (vi) approve the appropriate amount for each subcommittee to use in preparing its
68     budget;
69          (vii) set a budget figure; and
70          (viii) adopt a base budget in accordance with Subsection (2)(b) and direct the
71     legislative fiscal analyst to prepare one or more appropriations acts appropriating one or more
72     base budgets for the next fiscal year.
73          (b) In a base budget adopted under Subsection (2)(a), appropriations from the General
74     Fund, the Education Fund, and the Uniform School Fund shall be set as follows:
75          (i) if the next fiscal year ongoing revenue estimates set under Subsection (2)(a)(i) are
76     equal to or greater than the current fiscal year ongoing appropriations, the new fiscal year base
77     budget is not changed;
78          (ii) if the next fiscal year ongoing revenue estimates set under Subsection (2)(a)(i) are
79     less than the current fiscal year ongoing appropriations, the new fiscal year base budget is
80     reduced by the same percentage that projected next fiscal year ongoing revenue estimates are
81     lower than the total of current fiscal year ongoing appropriations;
82          (iii) in making a reduction under Subsection (2)(b)(ii), appropriated debt service shall
83     not be reduced, and other ongoing appropriations shall be reduced, in an amount sufficient to
84     make the total ongoing appropriations, including the unadjusted debt service, equal to the
85     percentage calculated under Subsection (2)(b)(ii); and
86          (iv) the new fiscal year base budget shall include an appropriation to the Department of
87     Health for Medicaid accountable care organizations in the amount required by Section
88     26-18-405.5.
89          (c) The chairs of each joint appropriations subcommittee are invited to attend this

90     meeting.
91          (3) All proposed budget items shall be submitted to one of the subcommittees named in
92     JR3-2-302 for consideration and recommendation.
93          (4) (a) After receiving and reviewing subcommittee reports, the Executive
94     Appropriations Committee may refer the report back to a joint appropriations subcommittee
95     with any guidelines the Executive Appropriations Committee considers necessary to assist the
96     subcommittee in producing a balanced budget.
97          (b) The subcommittee shall meet to review the new guidelines and report the
98     adjustments to the chairs of the Executive Appropriations Committee as soon as possible.
99          (5) (a) After receiving the reports, the Executive Appropriations Committee chairs will
100     report them to the Executive Appropriations Committee.
101          (b) The Executive Appropriations Committee shall:
102          (i) make any further adjustments necessary to balance the budget; and
103          (ii) complete all decisions necessary to draft the final appropriations bills no later than
104     the 39th day of the annual general session.
105          Section 2. JR3-2-501 is amended to read:
106          JR3-2-501. Meetings -- Appropriation reviews.
107          (1) (a) During the interim, the Executive Appropriations Committee shall meet at least
108     every other month on the day before interim meetings.
109          (b) The appropriations subcommittee chairs may attend these meetings and provide
110     input regarding their budget.
111          (2) [Appropriation] Appropriations subcommittees shall meet [at least once] during the
112     interim [and may also hold additional meetings if] as authorized by the Legislative
113     Management Committee in order for the subcommittees to carry out their responsibilities.
114          (3) For each interim, each subcommittee shall create a zero based budget for at least
115     20% of its line items or programs, and in doing so, shall ensure that each line item and program
116     is reviewed and included in the zero based budget no less frequently than every five years.
117          [(3)] (4) (a) The Executive Appropriations Committee may, based on a legislator's or
118     citizen's complaint, review any appropriation, whether in an appropriations bill or otherwise, to
119     ensure that the entity to which the funds were appropriated complies with any legislative intent
120     expressed in the legislation appropriating the funds.

121          (b) If the Executive Appropriations Committee finds that an entity has not complied
122     with any legislative intent concerning an appropriation expressed in the legislation
123     appropriating the fund, the committee may make a recommendation concerning the
124     appropriation to the entity receiving the funds and the Legislative Management Committee.






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